Feds raid Scottsdale luxury car dealership

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by Catherine Holland

Video reports by Jill Galus and Tanya Mendis

Posted on April 17, 2014 at 7:00 AM

Updated Monday, Apr 21 at 12:20 PM

Map: Luxor Auto Group
3220 N. Scottsdale Road

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SCOTTSDALE, Ariz. -- Federal agents and Scottsdale police are expected to return to a luxury car dealership after raiding the business Wednesday.

RELATED: Luxury car dealership raided in money laundering investigation

Agents with the Internal Revenue Service converged on Luxor Auto Group, which is located on Scottsdale Road south of Osborn Road, Wednesday afternoon.

Arizona Corporation Commission records, which were updated Wednesday, list the company president and director as Hamid Salari. Saeid Salari is listed as secretary and treasurer.

Hamid Salari filed a Corporation Annual Report and Certificate of Disclosure with the ACC on April 15. That form lists the Salaris as the sole shareholders.

Luxor, which also has a location in Mesa, was incorporated in 1997. The dealership's Facebook page describes Luxor as "[p]urveyors of the world's finest automobiles since 1992."

It is not clear what precipitated Wednesday's raid on the Scottsdale dealership, but according to public documents, the Arizona Department of Financial Institutions issued Luxor a cease-and-desist order on Sept. 29, 2011, alleging that the company "is not authorized to transact business in Arizona as a motor vehicle dealer or a sales finance company."

The AZDFI said information from Luxor indicated that it sold and financed vehicles during a four-year span -- October 2006-September 2010 -- that it was not properly licensed. The company's vehicle dealer and sales finance company licenses had expired on Sept. 16, 2006. According to AZDFI, they were not renewed.

Luxor submitted new license information on June 21, 2011.

The court documents show that Luxor and Hamid Salari were assessed a $10,000 penalty on Oct. 24, 2011. In addition, Salari was ordered to obtain the proper licenses before resuming business.

"Should Luxor Auto and Mr. Salari fail to comply with this Order, the Superintendent shall institute further disciplinary proceedings," reads the court paperwork, which carries Salari's signature.

It's not clear what happened after the court issued that order. A search of AZDFI.gov did not turn up any subsequent filings.

This is not the first time Luxor has faced accusations of conducting "unlicensed activity." The October 2011 order shows Luxor paid a $4,000 penalty in January 2006 after apparently having let its licenses lapse in September 2003.

The Arizona Department of Financial Institutions "is statutorily charged with the licensing, supervision and regulation of state-chartered financial institutions and enterprises."

Salari is slated to make his initial court appearance at 3 p.m.

3TV has reached out to Luxor, but no company representative has responded.

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